Independent study: merchants see investment payback in 6 months with Adyen

Jean-Marc Thienpont
Managing Director, point of sale solutions

Forrester interviewed Adyen clients and found that merchants can see a gain on payment costs of up to 15 basis points.

 

Retailers are always looking for ways to stay a step ahead in an extremely competitive industry. And while they may see or hear about the qualitative impacts of using a new tool or service, they rarely get a chance to see the hard numbers behind those choices.  

Adyen commissioned Forrester Consulting, an independent research firm, to conduct a Total Economic Impact™ study, which gives retailers a framework to evaluate how using Adyen might affect their organizations. What I find most exciting about the study is I think it gives companies so many concrete details about what they can expect after implementing Adyen.

In the study, Forrester interviewed four of Adyen’s global retail customers with multiple years of experience using the platform.

The main highlights? Forrester found that merchants see a payback from their investment within 6 months. Implementing Adyen also resulted in a 70% improvement in productivity gained in managing a reduced number of payment partners and platforms, and 75% productivity gains when expanding to new markets and channels.

A chart shows the summary of benefits merchants can expect after using Adyen.

Download the full study here. 

Other highlights for Adyen customers, according to the study:

  • Reduction in ancillary fees, such as terminal certification, compliance, service, dispute-related and other regulatory fees
  • Reduction in resources allocated to managing multiple acquiring and banking relationships
  • The ability to offer new, innovative payment experiences to their customers
  • A consolidated view of their customers’ purchase data, irrespective of the channel or market
  • Efficiencies gained from accepting payments in new geographies or through new channels
  • An improvement in authorization rates by reducing false-positives that are flagged as potentially fraud transactions

Forrester's methodology

For this study, Forrester interviewed four global retailers using the Adyen payments platform: two global manufacturing and retail companies, one hotel chain, and one cosmetics company. Based on the interviews, Forrester created a composite company and an associated overall ROI analysis.

The composite organization, according to Forrester, is multinational, with $2 billion in annual revenues, and uses Adyen to process both digital and in-store payments in 10 countries.

Adyen benefit 1: reduced fees

One of the key benefits of implementing Adyen for the composite organization was both transparency and reduced fees associated with accepting credit card and debit card payments across geographies, markets, and channels. Prior to implementing Adyen, the organization paid various types of fees depending on its relationships with local banks and acquirers. Even though the organization experienced slightly higher transaction fees with Adyen, reducing many of these ancillary fees resulted in overall savings of 15 basis points per transaction.

For the organization, fees that were reduced because of its investment in Adyen included:

  • PCI compliance and other regulatory fees
  • Monthly service charges
  • Processing fees including chargebacks, foreign exchange, and dispute management fees
  • Terminal certification fees   

Adyen benefit 2: streamlining employees focused on payments

According to Forrester, implementing Adyen improved productivity for the composite organization by reducing the number of payments partners and platforms. In other words, the organization could dedicate fewer employees to dealing with payments. Prior to Adyen, the company dedicated resources and employees to managing payments in each individual market where it operated -- mainly relating to contract management, partner management, security, reporting and reconciliation, and compliance activities.                                             

Adyen benefit 3: increased efficiency expanding to new markets

Due to Adyen’s global reach and single payments platform, the composite organization improved the time-to-market and efficiency with which it can start accepting payments in new countries and new channels. Prior to Adyen, the composite organization had to dedicate resources and time to select and negotiate contracts with acquiring partners. In addition, there was a significant amount of time integrating and certifying new local market terminals. Upon implementing Adyen, the composite organization realized 75% efficiency in launching new payments solutions in a new market.

More highlights: Over three years, Forrester found the composite organization could achieve a 106% return in cost saving benefits, compared to the costs associated with their investment in Adyen (ROI). Also in three years, the organization could see benefits of $5.8 million versus costs of $2.8 million, adding up to a net present value (NPV) of about $3 million. 

A chart shows the cost savings merchants can experience after implementing Adyen.

To read the full analysis, click below.